The Company's Q2 results included revenue of
Since the first quarter of this year, the Company has restructured its business units, established a new high-calibre board and management team, and built a top-tier technology talent team that has returned to
Earlier this month, Argo announced its plans to create the world's first vertically and publicly integrated city transit system powered through partnerships with cities, transit agencies and governments. The ultimate goal is to increase access to and ridership of transit systems by making public transit the most convenient way to move within and across cities while putting people in control of their mobility.
The Company noted it will soon launch within the
FoodsUp Developments
FoodsUp, one of
With the Company holding a 59.95% stake, there remains a strategic plan to divest a majority of its indirect equity interest to shareholders. This would allow shareholders to directly benefit from FoodsUp's rapid expansion and increasing market presence. While the divestment is not guaranteed, it represents a significant opportunity for shareholders to capitalize on the Company's continued success.
Second Quarter Highlights
- Revenue Growth: The Company's On-Demand Services revenue grew by 103% year-over-year in Q2 2024, driven by the continued expansion of the DAAS business division, which provides last-mile delivery services to large retailers.
-
R&D Investment : R&D investment increased by 327% yearly as the Company developed its proprietary transit software and hardware solutions, preparing for post-launch demand. - Cost Optimization: Sales & Marketing expenses decreased by 64%, and G&A expenses were reduced by 45% year-over-year, reflecting strategic cost management initiatives and efficiency improvements.
- Asset Divestment: The Company retains a 59.95% indirect equity interest in FoodsUp on its balance sheet for its shareholders. Further to previous public disclosure, the Company remains committed to implementing a divestment of most of its FoodsUp equity interest to shareholders.
Second Quarter Results Compared to Q2 2023
For the three months ended |
|
|
2024 |
|
|
2023 |
REVENUE |
|
|
413,758 |
|
|
1,006,817 |
Cost of revenue |
|
|
361,031 |
|
|
1,818,078 |
General and administration |
|
|
759,560 |
|
|
1,372,608 |
Provision for bad debt |
|
|
10,257 |
|
|
NA |
Operational support |
|
|
508,855 |
|
|
833,625 |
Research and development |
|
|
618,560 |
|
|
145,031 |
Sales and marketing |
|
|
92,875 |
|
|
259,016 |
Amortization |
|
|
34,752 |
|
|
196,865 |
Depreciation |
|
|
673 |
|
|
90,471 |
Total operating expenses |
|
|
2,386,563 |
|
|
4,715,694 |
OPERATING LOSS |
|
|
(1,972,805) |
|
|
(3,708,877) |
|
|
|
|
|
|
|
OTHER INCOME (EXPENSES) |
|
|
|
|||
Foreign exchange gain (loss) |
|
|
40,897 |
|
|
143,436 |
Interest expenses |
|
|
(608,130) |
|
|
(391,558) |
Interest income |
|
|
1,095 |
|
|
7,060 |
Loss from sale of equipment |
|
|
NA |
|
|
NA |
Gain (Loss) on termination |
|
|
2,659,307 |
|
|
NA |
Gain (Loss) on investment |
|
|
(159,063) |
|
|
NA |
Penalties and settlements |
|
|
(29,974) |
|
|
NA |
Share of loss of an associate |
|
|
(856,924) |
|
|
NA |
PROFIT/(LOSS) BEFORE INCOME TAXES |
|
|
(935,782) |
|
|
(3,949,939) |
NET PROFIT |
|
|
(935,782) |
|
|
(3,949,939) |
Cumulative translation adjustment |
|
|
(123,959) |
|
|
35,172 |
NET PROFIT AND COMPREHENSIVE PROFIT |
|
|
(1,059,741) |
|
|
(3,914,767) |
(Loss) profit per share – Basic and diluted |
|
|
(0.01) |
|
|
(0.03) |
Weighted average shares outstanding - Basic and diluted |
|
|
132,944,615 |
|
|
123,909,409 |
Omnibus Incentive Plan
Following the approval of the Company's new omnibus long-term incentive plan and the appointment of new board members at its
About Argo
Argo is a new technology venture that delivers the first-ever vertically and publicly integrated city transit system. It is designed to augment public transportation and create a network of intelligently routed vehicles that work together to serve and scale to the needs of entire cities, putting people in control of their mobility. You can learn more at www.rideargo.com.
Forward-Looking Information
This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate," "estimate," and "intend," and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, as described in more detail in the Company's securities filings available at www.sedarplus.ca. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law. See "Forward-Looking Information" and "Risk Factors" in the Company's Annual Management Discussion & Analysis (MD&A) for the year ended
____________________ |
1 All figures are accurate to the hundreds. |
SOURCE